2.4.6 Important changes in composition caused by Codes

What was the corporate governance problem the Cadbury Committee sought to address? Although various problems were identified, the central problem was what was known as the "imperial CEO". The Committee's proposals involved putting in place various balances.1 These measures were board balance, independent NEDs, no overly large boards, NED majority on the board and committees, a separate chairman, evaluation procedures, a system for reelection/succession, formal lists of the division of responsibilities and timely information for NEDs. All these measures work together to create the right balance for boards.